Title: Managing Ethics and Diversity
1Managing Ethics and Diversity
MAN 3025 Management of Organizations
Chapter 3
2Chapter 3 Checklist
- Nature of Ethics
- Stakeholders and Ethics
- Rules for Ethical Decision Making
- Sources of Organizational Ethics
- Diversity of the Workforce
- Effective Management of Diversity
- Sexual Harassment
3Nature of Ethics
- Ethical Dilemmas
- Two or more values in conflict
- Lesser of two evils
- Right thing to do for the benefit of society at
the expense of self-interest - One of two mutually exclusive courses of action
results in a disadvantage to one of the involved
parties - Ethics Inner-guiding moral principles, values,
and beliefs used to analyze or interpret a
situation and then decide the appropriate course
of action
4Nature of Ethics
- Societal values dictate ethics
- Core
- Transitional
- Situational
- Ethics and change
- Time
- Circumstances
- Ethics promulgate laws
5Stakeholders and Ethics
- Stakeholders are those whom the corporation
benefits or burdens by its actions and those who
benefit or burden the firm with their actions. - Primary stakeholders
- Secondary stakeholders
- Debate about how to identify who or what is a
stakeholder. - Stakeholder model is an ethical theory of
management in which the welfare of each
stakeholder must be considered as an end.
6Stakeholders and Ethics
- Stakeholders supply an organization with its
productive resources and thus have a stake in
the organization - Primary Stakeholders
- Stockholders
- Managers
- Employees
- Suppliers and distributors
- Customers
- Community, society, and nation/state
7Stakeholders and Ethics
- Secondary Stakeholders
- Unions
- Creditors
- Competitors
- Political groups
- Environment
- Future generations
- Media
- Beneficiary groups (Religious and charity)
- Media
- Educational Institutions
8Rules for Ethical Decision Making
- Utilitarian Rule
- Origin Jeremy Bentham and John Stuart Mill.
- Basic premise The greatest good for the greatest
number. - Criticism
- In practice it has led to self-interested
reasoning. - Because decisions are to be made for the greatest
good of all, utilitarian thinking has led to
decisions that permit the abridgement of
individual or minority group rights.
9Rules for Ethical Decision Making
- Moral Rights Rule
- Origin Amalgam of Buddhism Judeo-Christian-Isla
mic tenets Herbert Spencer, etc. - Basic premise Maintain and protect the
fundamental or inalienable right and privileges
of people affected by a decision - Criticism
- Lacks a tie breaker for situations in which two
rights conflict - Peoples ethical values differ, and they may
mistakenly assume that their preferences are
universal.
10Rules for Ethical Decision Making
- Justice Rule
- Origin John Rawls
- Basic premise Decision should distribute
benefits and harms among people in a fair,
equitable, or impartial manner. - Criticism
- Requires individual injustices to accomplish a
greater good. Equitable manner may not exist. - Premises can lead to encroachment on majority
group rights - Benefits and harms may be subjective terms
11Rules for Ethical Decision Making
- Practical Rule
- Origin Conventionalist Ethic (Carr) and
Disclosure Rule (Baxter) - Basic premise Manager has no reluctance about
communicating an ethical decision outside the
company because the typical person in society
would find it acceptable. - Criticism
- Does not always give clear guidance for ethical
dilemmas in which strong arguments exist for
several alternatives. - An action that sounds acceptable if disclosed may
not, upon reflection, be the most ethical.
12Sources of Organizational Ethics
Cultural Experience
Religion
Ethical Values
Philosophy
Law
13Sources of Organizational Ethics
- Code of Ethics
- Societal Ethics
- Professional Ethics
- Individual Ethics
- Ethics Ombudsman
14Diversity of the Workforce
Sources of Diversity in the Workplace
Federally Protected
Not Federally Protected
- Age
- Gender
- Race
- Ethnicity
- Religion
- Capabilities/Disabilities
- Socio-Economic Background
- Sexual Orientation
- Education
- Experience
- Physical Appearance
- Other
15Diversity of the Workforce
- 1963 Equal Pay Act
- 1964 Title VII of Civil Rights Act
- 1967 Age Discrimination in Employment Act
- 1978 Pregnancy Discrimination Act
- 1990 Americans with Disabilities Act
- 1991 Civil Rights Act Amendment
- 1993 Family and Medical Leave Act
16Effective Management of Diversity
- Challenges of Diversity in the Workplace
- Priorities and Values
- Preferences
- Perspectives
- Perceptions
- Practices
17Effective Management of Diversity
- Crucial Roles in Diversity Management
- Interpersonal
- State organizational support of diversity
- Serve as role model
- Encourage cross-cultural exchanges
- Informational
- Monitor fair treatment of diverse employees
- Inform employees of zero tolerance policies
- Support community-based diversity initiatives
- Decisional
- Commit resources to eliminate discrimination
- Work with supporting organizations and groups
18Sexual Harassment
- EEOC Guidelines on Sexual Harassment
- Unwelcomed sexual advances, requests for
sexual favors, and other verbal or physical
conduct of a sexual nature constitute sexual
harassment when - submission to such conduct is made either
explicitly or implicitly a term or condition of
an individuals employment, - submission to or rejection of such conduct by an
individual is used as the basis for employment
decisions affecting such individual, or - Such conduct has the purpose or effect of
unreasonably interfering with an individuals
work performance or creating an intimidating,
hostile, or offensive working environment. - (29 CFR 1604.11(a))
19Sexual Harassment
- Meritor Savings Bank v Vinson (1986)
- Quid Pro Quo
- Sexual harassment requiring sexual favors in
exchange for positive job treatment. - Hostile Environment
- Harassment produced by workplace conduct and/or
setting that is considered to make an abusive
working environment.
20Sexual Harassment
- Harris v Forklift Systems (1993)
- Oncale v Sundowner Offshore Services (1998)
- Faragher v Boca Raton (1998)
- Burlington Industries v Ellerth (1998)
21Sexual Harassment
- Steps to eradicate Sexual Harassment
- Develop and clearly communicate sexual harassment
policy endorsed by top management - Use a fair complaint procedure to investigate
charges of sexual harassment - If it has been determined that sexual harassment
has taken place, take corrective actions as soon
as possible. - Provide ongoing sexual harassment education and
training to all organizational members, including
managers.